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Trump's Casino Business Files for Bankruptcy

The casino empire of Donald J. Trump has filed for bankruptcy protection after months of negotiations with bondholders over restructuring a crushing debt.

Trump Hotels and Casino Resorts Inc. and several related operations filed for protection on Sunday in Federal Bankruptcy Court in Camden, N.J. The casino business consists mainly of three Atlantic City properties and a riverboat casino in Indiana and is only a small part of Mr. Trump's overall real estate empire.

The filings came even as Mr. Trump, the developer and best-selling author, has returned to the spotlight with the television show "The Apprentice."

In a telephone interview yesterday, Mr. Trump said he would remain chairman and chief executive of Trump Hotels and Casino Resorts, but his ownership stake would be reduced to 27 percent from 47 percent under a restructuring plan reached with bondholders last month. He would still be the largest single shareholder and would still be running the company, he said.

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The casinos will continue to operate, and Mr. Trump refused to call the filing a setback. "In this case," Mr. Trump said in an interview, "it was just something that worked better than other alternatives."

The overall stake of existing shareholders, other than Mr. Trump, will be reduced to 0.05 percent from 44 percent, according to the filings. Shareholders will be issued warrants allowing them to buy more than 8 percent of the company, at 1.5 cents a share, well below recent trading prices.

The Trump casino operations have been fighting to survive amid debt that has hampered Mr. Trump's efforts to maintain and expand the Trump Marina, Trump Taj Mahal and Trump Plaza casinos in Atlantic City. The properties have been hurt by new competitors like the Borgata Hotel Casino and Spa.

The filings list debt of about $1.8 billion. Mr. Trump said the company would also be able to draw on a $500 million credit line.